Business Model Canvas

Design and analyze business models using Osterwalder's Business Model Canvas and Lean Canvas. Creates structured 9-block canvases for business model innovation, startup validation, and strategic planning.

What is a Business Model Canvas?

A Business Model Canvas (BMC) is a strategic management template for developing new or documenting existing business models. It's a visual chart describing a firm's value proposition, infrastructure, customers, and finances.

Aspect	Business Model Canvas	Lean Canvas
Creator	Alexander Osterwalder	Ash Maurya
Focus	Established businesses	Startups, early-stage
Emphasis	Value creation & delivery	Problem-solution fit
Key Difference	Key Partners, Key Resources	Problem, Solution, Unfair Advantage

The 9 Building Blocks

Business Model Canvas Blocks

┌─────────────────┬─────────────────┬─────────────────┬─────────────────┬─────────────────┐
│ Key Partners    │ Key Activities  │ Value           │ Customer        │ Customer        │
│                 │                 │ Propositions    │ Relationships   │ Segments        │
│ Who helps us?   │ What do we do?  │                 │                 │                 │
│                 │                 │ What value do   │ How do we       │ Who do we       │
│                 ├─────────────────┤ we deliver?     │ interact?       │ serve?          │
│                 │ Key Resources   │                 │                 │                 │
│                 │                 │                 ├─────────────────┤                 │
│                 │ What do we      │                 │ Channels        │                 │
│                 │ need?           │                 │                 │                 │
│                 │                 │                 │ How do we       │                 │
│                 │                 │                 │ reach them?     │                 │
├─────────────────┴─────────────────┴─────────────────┴─────────────────┴─────────────────┤
│ Cost Structure                                      │ Revenue Streams                   │
│ What does it cost?                                  │ How do we earn?                   │
└─────────────────────────────────────────────────────┴───────────────────────────────────┘

Block Definitions

Block	Question	Examples
Customer Segments	Who are our most important customers?	Mass market, Niche, Segmented, Diversified
Value Propositions	What value do we deliver? What problems do we solve?	Newness, Performance, Customization, Price
Channels	How do we reach and deliver to customers?	Direct, Indirect, Own, Partner
Customer Relationships	How do we interact with each segment?	Personal, Automated, Self-service, Communities
Revenue Streams	How does each segment pay?	Asset sale, Subscription, Licensing, Advertising
Key Resources	What do we need to deliver our value proposition?	Physical, Intellectual, Human, Financial
Key Activities	What must we do well?	Production, Problem Solving, Platform/Network
Key Partnerships	Who helps us?	Strategic alliances, Suppliers, Joint ventures
Cost Structure	What are our major costs?	Fixed, Variable, Economies of scale/scope

Workflow

Phase 1: Preparation

Step 1: Define Context

## Canvas Context

**Organization:** [Company / Product / Initiative]
**Purpose:** [New business / Innovation / Documentation / Pivot]
**Scope:** [Entire business / Product line / Service]
**Date:** [ISO date]
**Facilitator:** canvas-facilitator

Step 2: Gather Inputs

Before filling the canvas:

• Existing business plans, strategy documents
• Customer research, personas
• Competitive analysis
• Financial data (if documenting existing model)

Phase 2: Fill the Canvas (Right to Left)

Start with Customer Segments (demand side), then move to Value Proposition and infrastructure (supply side).

Step 1: Customer Segments

## Customer Segments

| Segment | Description | Size | Priority |
|---------|-------------|------|----------|
| [Name] | [Who are they? Demographics, needs] | [Market size] | Primary/Secondary |

**Questions to answer:**
- For whom are we creating value?
- Who are our most important customers?
- What are their jobs-to-be-done?

Segment Types

Type	Description	Example
Mass Market	Large group, similar needs	Consumer electronics
Niche Market	Specialized, specific needs	Luxury goods
Segmented	Distinct segments, related needs	Banks (retail vs wealth)
Diversified	Unrelated segments	Amazon (retail + AWS)
Multi-sided	Interdependent segments	Platforms (users + advertisers)

Step 2: Value Propositions

## Value Propositions

| Segment | Value Proposition | Type | Differentiation |
|---------|-------------------|------|-----------------|
| [Segment] | [What value delivered?] | [Type] | [Why us over competitors?] |

**Questions to answer:**
- What value do we deliver to each segment?
- Which customer problems are we solving?
- What bundles of products/services do we offer?

Value Proposition Types

Type	Description
Newness	New, previously unavailable
Performance	Better performance
Customization	Tailored to needs
Getting the Job Done	Helps complete a task
Design	Superior design
Brand/Status	Status or brand value
Price	Lower price
Cost Reduction	Reduces customer costs
Risk Reduction	Reduces customer risks
Accessibility	Makes available to new users
Convenience	Easier to use

Step 3: Channels

## Channels

| Phase | Channel | Type | Effectiveness |
|-------|---------|------|---------------|
| Awareness | [How do customers learn about us?] | Own/Partner | High/Med/Low |
| Evaluation | [How do they evaluate?] | Own/Partner | High/Med/Low |
| Purchase | [How do they buy?] | Own/Partner | High/Med/Low |
| Delivery | [How do we deliver?] | Own/Partner | High/Med/Low |
| After Sales | [How do we support?] | Own/Partner | High/Med/Low |

Step 4: Customer Relationships

## Customer Relationships

| Segment | Relationship Type | Purpose | Cost |
|---------|-------------------|---------|------|
| [Segment] | [Type] | Acquisition/Retention/Upselling | High/Med/Low |

Relationship Types

Type	Description
Personal Assistance	Human interaction
Dedicated Personal	Specific rep assigned
Self-Service	No direct relationship
Automated Services	Automated personalization
Communities	User communities
Co-creation	Customers help create value

Step 5: Revenue Streams

## Revenue Streams

| Segment | Revenue Type | Pricing Model | % of Revenue |
|---------|--------------|---------------|--------------|
| [Segment] | [Type] | Fixed/Dynamic | [Percentage] |

Revenue Types

Type	Description	Pricing
Asset Sale	Selling ownership rights	List price, Volume, Negotiation
Usage Fee	Pay per use	Per unit, Tiered
Subscription	Recurring payment	Monthly, Annual
Lending/Renting	Temporary access	Time-based
Licensing	Permission to use IP	Per license, Royalty
Brokerage	Intermediation fee	Commission
Advertising	Display ads	CPM, CPC, CPA

Step 6: Key Resources

## Key Resources

| Resource | Category | Source | Strategic Importance |
|----------|----------|--------|---------------------|
| [Resource] | Physical/IP/Human/Financial | Own/Lease/Partner | Critical/Important/Supporting |

Step 7: Key Activities

## Key Activities

| Activity | Category | Importance | Insource/Outsource |
|----------|----------|------------|-------------------|
| [Activity] | Production/Problem Solving/Platform | Critical/Important | Insource/Outsource |

Step 8: Key Partnerships

## Key Partnerships

| Partner | Type | Motivation | Resources Provided |
|---------|------|------------|-------------------|
| [Partner] | Strategic Alliance/Coopetition/JV/Supplier | Optimization/Risk/Acquisition | [What they provide] |

Partnership Motivations

• Optimization and Economy of Scale - Reduce costs
• Reduction of Risk and Uncertainty - Share risk
• Acquisition of Resources and Activities - Gain capabilities

Step 9: Cost Structure

## Cost Structure

| Cost Category | Type | Driver | % of Total |
|---------------|------|--------|------------|
| [Cost] | Fixed/Variable | [What drives it] | [Percentage] |

**Cost Focus:** ☐ Cost-Driven ☐ Value-Driven

Phase 3: Analysis and Validation

Step 1: Check Coherence

Check	Question	Pass?
Value-Customer Fit	Does value proposition address segment needs?	☐
Channel-Segment Fit	Do channels reach segments effectively?	☐
Revenue-Cost Balance	Do revenues exceed costs?	☐
Resource-Activity Alignment	Do resources support key activities?	☐
Partnership Logic	Do partnerships fill capability gaps?	☐

Step 2: Identify Risks

## Business Model Risks

| Block | Risk | Likelihood | Impact | Mitigation |
|-------|------|------------|--------|------------|
| [Block] | [Risk description] | H/M/L | H/M/L | [Action] |

Lean Canvas (Alternative)

For startups and early-stage ventures, use Lean Canvas which replaces some blocks:

BMC Block	Lean Canvas Block	Why the Change
Key Partners	Problem	Focus on problem validation
Key Activities	Solution	Focus on solution validation
Key Resources	Key Metrics	Measure what matters
Customer Relationships	Unfair Advantage	Competitive moat

Lean Canvas Template

## Lean Canvas: [Product/Startup]

**Date:** [ISO date]
**Iteration:** [1, 2, 3...]

### Problem (Top 3)
1. [Most critical problem]
2. [Second problem]
3. [Third problem]

**Existing Alternatives:** [How do customers solve this today?]

### Customer Segments
**Early Adopters:** [Who will use first?]

### Unique Value Proposition
**Single, clear message:** [One sentence that explains why you're different and worth attention]

**High-Level Concept:** [X for Y analogy, e.g., "Uber for dog walking"]

### Solution (Top 3 Features)
1. [Feature addressing Problem 1]
2. [Feature addressing Problem 2]
3. [Feature addressing Problem 3]

### Channels
[Path to customers - how will you reach early adopters?]

### Revenue Streams
[Revenue model, pricing, lifetime value]

### Cost Structure
[Customer acquisition costs, hosting, people, etc.]

### Key Metrics
[The numbers that tell you how you're doing]

### Unfair Advantage
[Something that cannot easily be copied or bought]

Output Formats

Narrative Summary

## Business Model Summary: [Organization]

**Date:** [ISO date]
**Analyst:** canvas-analyst
**Type:** Business Model Canvas / Lean Canvas

### Executive Summary
[2-3 sentence summary of the business model]

### Customer Focus
- **Primary Segment:** [Description]
- **Value Delivered:** [Core value proposition]
- **Channels:** [Primary channels]

### Value Creation
- **Key Activities:** [Core activities]
- **Key Resources:** [Critical resources]
- **Key Partners:** [Strategic partners]

### Financial Model
- **Revenue Model:** [How money is made]
- **Cost Structure:** [Major cost drivers]
- **Unit Economics:** [Key metrics]

### Risks and Opportunities
| Type | Description | Priority |
|------|-------------|----------|
| Risk | [Top risk] | High |
| Opportunity | [Top opportunity] | High |

### Recommendations
1. [Priority recommendation]
2. [Secondary recommendation]

Structured Data (YAML)

business_model_canvas:
  version: "1.0"
  date: "2025-01-15"
  organization: "Acme Corp"
  analyst: "canvas-analyst"
  type: "business_model_canvas"  # or "lean_canvas"

  customer_segments:
    - name: "SMB Owners"
      description: "Small business owners seeking efficiency"
      size: "5M in target market"
      priority: primary
      jobs_to_be_done:
        - "Manage invoicing"
        - "Track expenses"

  value_propositions:
    - segment: "SMB Owners"
      proposition: "Automated bookkeeping that saves 10 hours/week"
      type: convenience
      differentiation: "AI-powered categorization"

  channels:
    - phase: awareness
      channel: "Content marketing"
      type: own
      effectiveness: high
    - phase: purchase
      channel: "Website"
      type: own
      effectiveness: high

  customer_relationships:
    - segment: "SMB Owners"
      type: self_service
      purpose: retention
      cost: low

  revenue_streams:
    - segment: "SMB Owners"
      type: subscription
      pricing: "fixed"
      amount: "$29/month"
      percentage: 85

  key_resources:
    - name: "AI/ML Platform"
      category: intellectual
      source: own
      importance: critical

  key_activities:
    - activity: "Platform development"
      category: production
      importance: critical
      insource: true

  key_partnerships:
    - partner: "Accounting Firms"
      type: strategic_alliance
      motivation: acquisition
      provides: "Referrals, expertise"

  cost_structure:
    focus: value_driven
    costs:
      - category: "Engineering"
        type: fixed
        percentage: 40
      - category: "Cloud hosting"
        type: variable
        percentage: 15

  validation:
    value_customer_fit: true
    channel_segment_fit: true
    revenue_cost_balance: true

Mermaid Diagram

flowchart TB
    subgraph Partners["Key Partners"]
        P1[Partner 1]
        P2[Partner 2]
    end

    subgraph Activities["Key Activities"]
        A1[Activity 1]
        A2[Activity 2]
    end

    subgraph Resources["Key Resources"]
        R1[Resource 1]
        R2[Resource 2]
    end

    subgraph VP["Value Propositions"]
        V1[Value 1]
        V2[Value 2]
    end

    subgraph CR["Customer Relationships"]
        CR1[Relationship 1]
    end

    subgraph CH["Channels"]
        CH1[Channel 1]
        CH2[Channel 2]
    end

    subgraph CS["Customer Segments"]
        CS1[Segment 1]
        CS2[Segment 2]
    end

    Partners --> Activities
    Resources --> VP
    Activities --> VP
    VP --> CR
    VP --> CH
    CR --> CS
    CH --> CS

    subgraph Costs["Cost Structure"]
        C1[Cost 1]
        C2[Cost 2]
    end

    subgraph Revenue["Revenue Streams"]
        Rev1[Revenue 1]
        Rev2[Revenue 2]
    end

When to Use

Scenario	Use Business Model Canvas?
New venture planning	Yes - full canvas
Startup validation	Yes - Lean Canvas preferred
Business model innovation	Yes - explore alternatives
Strategic planning	Yes - document current state
M&A analysis	Yes - compare models
Product line analysis	Partial - focused canvas

Integration

Upstream

• stakeholder-analysis - Identify customer segments
• swot-pestle-analysis - Environmental context
• journey-mapping - Customer experience insights

Downstream

• Requirements - Feature requirements from value propositions
• Financial modeling - Revenue and cost projections
• Roadmaps - Initiative prioritization

Related Skills

• stakeholder-analysis - Customer and partner analysis
• swot-pestle-analysis - Strategic context
• value-stream-mapping - Operational efficiency
• capability-mapping - Organizational capabilities
• decision-analysis - Business model decisions

Version History

• v1.0.0 (2025-12-26): Initial release